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Thursday, June 15, 2017
No Jones Act Tankers to Carry LNG
By Grassroot Institute @ 1:54 AM :: 5901 Views :: Energy, Jones Act

No Jones Act tankers are capable of carrying liquid natural gas

by Joe Kent, Grassroot Institute, June 14, 2017

Thomas Grennes, emeritus professor of economics at North Caroline State University, wrote a letter to the Wall Street Journal on June 13th, 2017.

He states:

“Currently no Jones Act-eligible tankers are capable of carrying LNG. To transport LNG from a West Coast port such as Oregon to Hawaii would require building a much more expensive American ship. Repealing or reforming the Jones Act would give Americans access to improved transport infrastructure, allow greater energy production, and relax excessive regulation without any cost to the federal budget.”

Read the full letter in the Wall Street Journal here.

Professor Grennes also completed an economic analysis of the Jones Act, published at the Mercatus Center. In the study, Professor Grennes states:

“The supply of US natural gas continues to increase since the shale revolution, and the United States recently became a net exporter of natural gas. However, Hawaii and Puerto Rico are unable to benefit from cheaper natural gas. US shipyards have not yet produced a Jones Act–eligible liquefied natural gas tanker that could supply Hawaii or Puerto Rico.”

Read the full economic analysis, published by the Mercatus Center, here.

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